Correlation Between Citigroup and Solid Biosciences
Can any of the company-specific risk be diversified away by investing in both Citigroup and Solid Biosciences at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Citigroup and Solid Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Solid Biosciences LLC, you can compare the effects of market volatilities on Citigroup and Solid Biosciences and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Citigroup with a short position of Solid Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Solid Biosciences.
Diversification Opportunities for Citigroup and Solid Biosciences
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Solid is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Solid Biosciences LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solid Biosciences LLC and Citigroup is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Citigroup are associated (or correlated) with Solid Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solid Biosciences LLC has no effect on the direction of Citigroup i.e., Citigroup and Solid Biosciences go up and down completely randomly.
Pair Corralation between Citigroup and Solid Biosciences
Taking into account the 90-day investment horizon Citigroup is expected to generate 0.32 times more return on investment than Solid Biosciences. However, Citigroup is 3.08 times less risky than Solid Biosciences. It trades about 0.11 of its potential returns per unit of risk. Solid Biosciences LLC is currently generating about -0.04 per unit of risk. If you would invest 5,284 in Citigroup on November 4, 2024 and sell it today you would earn a total of 2,859 from holding Citigroup or generate 54.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Solid Biosciences LLC
Performance |
| Timeline |
| Citigroup |
| Solid Biosciences LLC |
Citigroup and Solid Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Solid Biosciences
The main advantage of trading using opposite Citigroup and Solid Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Solid Biosciences can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Solid Biosciences will offset losses from the drop in Solid Biosciences' long position.| Citigroup vs. JPMorgan Chase Co | Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Nu Holdings |
| Solid Biosciences vs. Century Therapeutics | Solid Biosciences vs. Edgewise Therapeutics | Solid Biosciences vs. C4 Therapeutics | Solid Biosciences vs. Mineralys Therapeutics, Common |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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